Coal producers mull suing govt over export tax

Indonesian coal producers consider filing a suit to force the government to revoke its policy that imposes a 5 percent tax on coal exports.

?We are preparing the background (papers) for the suit. We have notified the Office of Coordinating Minister for the Economy about the plan,? Chairman of the Indonesian Coal Mining Association (APBI) Jeffrey Mulyono told Petromindo.Com on Thursday.

The Ministry of Finance issued a decree to impose a 5 percent tax on coal exports in October last year and set the base price at US$30 per ton early this year.

The government argues the policy is necessary for the effort to curb coal exports and provide greater supply of coal to the local market.

Jeffrey said coal producers who would participate in the suit were the holders of the Second Generation Coal Contract of Work (CCoW) and Mining Contract (KP). (Godang)